Retained earnings Required information Problem 3-3A (Algo) Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5 [The following information applies to the questions displayed below.) Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows, along with descriptions of items a through h that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policies shows that $3,996 of coverage has expired. b. An inventory count shows that teaching supplies costing $3,464 are available at year-end. c. Annual depreciation on the equipment is $15,986. d. Annual depreciation on the professional library is $7,993. e. On September 1, WTI agreed to do five courses for a client for $2,700 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $13,500 cash in advance for all five courses on September 1, and WTI credited Unearned Revenue. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $12,903 of the tuition revenue has been earned by WTI. g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Debit Credit Cash $ 26,038 Accounts receivable 0 Teaching supplies 10,013 Prepaid insurance 15,023 Prepaid rent 2,004 Professional library 30,043 Accumulated depreciation-Professional library $ 9,014 Equipment 101,000 Accumulated depreciation-Equipment 16,025 Accounts payable 26,000 Salaries 0 Salaries payable nearned revenue 13,500 Common 19,171 83,000 Dividends Dividends 40,059 Tuition revenue 102,148 Training revenue 38,055 Depreciation expense-Professional library 0 Depreciation expense-Equipment 0 Salaries ex 48,071 Insurance expense 0 Rent expense 22,044 Teaching supplies expense 0 Advertising expense 7,010 Utilities expense 5,608 Totals $ 306,913 $ 306, 913 common stock expense oblem 3-3A (Algo) Part 2 a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. . Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Req 2A Reg 2B Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. Cash Equipment nadj. Bal. Unadj. Bal. dj. Bal. Adj. Bal. Accounts Receivable Accumulated Depreciation-Equipment nadj. Bal. Unadj. Bal. dj. Bal. Adj. Bal. Teaching Supplies Accounts Payable nadj. Bal. Unadj. Bal. Prepaid Insurance Salaries Payable Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Prepaid Rent Unearned Revenue Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Professional Library Common Stock Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Retained Earnings Accumulated Depreciation Professional Library Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Tuition Revenue Dividends Unadj. Bal Unadj. Bal. Adj. Bal. Adj. Bal. Training Revenue Rent Expense Unadj. Bal Unadj. Bal Adj. Bal. Adj. Bal. Depreciation Expense-Professional Library Teaching Supplies Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Depreciation Expense-Equipment Advertising Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Salaries Expense Utilities Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. Insurance Expense Unadj. Bal. Adj. Bal. 2-a. Post the balance from the unadjusted trial balance and the adjusting entries into the T-accounts. 2-b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Reg 2A Reg 2B Prepare an adjusted trial balance. WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31 Debit Credit Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Dividends Tuition revenue Training revenue Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals